Saturday, January 9, 2016

Week Ending Jan 9

What a crazy week. Not sure what to make of it, I was hoping for at least a dead cat bounce of sorts at but alas it wasn't to be.

6 Put spreads went under , 3000$ wiped out there.

What's frustrating is the finickiness of my broker, at the time I was doing this I had around $344 in Excess Liquidity.
I tried to leg out of the Condors but it didn't allow me, the message read "Margin deficit would increase".
This is what I had on Friday morning

1x 1935/1940 P and 2065/2070C
5x 1950/1955 P and 2125/2130 C 
1x 1960/1965 and 2125/2130 C

Okay that's fine, I closed the 1935/1940 Put spread but here's the problem the other side 2065/2070 was still open so the margin was locked for that.
Another problem was that even after placing a trade to close it , there weren't any takers, I went up to 20c, but couldn't close the call side of this Iron Condor.

Finally , this was the most frustrating part, I tried to leg out of the 1950/1955 condor , obviously this would be a Debit spread, hence should be taken from cash which was 4627$ at the time, but still it was asking for margin.
I really don't understand this.

So there we are, cash is around 735$ and I still have 2 condors that are in the money for next week expiry 1960/1965P 2125/2130C.

I found a very informative approach to Iron Condors touch free by a CBOE instructor - purely Delta based trading.I'll post it here shortly.

The biggest mistake I made in my opinion is holding the Condors too long, definitely taking them to expiration in the long run is a losing proposition.
To put things in perspective this week was the worst since 2011 January, 2 Trillion dollars was wiped out.

Ill have to think of something, it's very depressing.